Interconnect July 2018

Voted Best Seaport In Oceania

for the third consecutive year

2 Ports of Auckland Focus

4 Better use of space: New Vehicle Booking System

business rules go live

6 Multi-Cargo and stink bugs from Japan

8 Sustainability Focus

10 Working together with PortConnect

11 Award winning staff

12 Supply Chain updates and Nexus Logistics

14 Market RoundUp Front cover photo: Working for Auckland 24/7

Back cover photo: The Marine team at Ports of Auckland beat the sun up on their way to meet a vessel

Interconnect July 2018

CONTENTS

A couple of events have dominated the year so far. One bad – the Brown Marmorated Stink Bug, and one that should be pretty good – our 30-year Master Plan.

The stink bug issue has been a real challenge for us and I know it’s been a really hard time for the vehicle importing supply chain. We’ve had to deal with extended processing time for ships, with knock on delays for other vessels causing queues in the gulf, with up to six or seven ships waiting at anchor at times. Others have been harder hit, with some in the trucking industry, compliance centres, dealers and others facing significant hardship as the flow of vehicles temporarily dried up.

We hope that the new system put in by MPI will lead to a more predicable process and prevent any future interruptions to the supply chain, while at the same time keeping this dangerous pest out of the country. On the positive side, the whole industry has pulled together to keep things moving, and I would like to thank all those who have helped, particularly in dealing with the surge in imports after the initial interruption of supply.

When the tap was turned back on, we had a new problem to deal with – record import volumes. With a small land area we don’t have much storage space so vehicles had to be taken off the port quickly to avoid the whole system getting clogged up. I’d like to thank everyone in the supply chain, from trucking companies to compliance centres and many others who have pulled out the stops to keep things moving 24/7.

In a way, this is a sign of things to come. As cargo volumes increase across the port, pressure on our land area will increase and the supply chain, for all cargoes, will have to move to greater use of weekends and nights to avoid congestion.

While efficiency at the port and in the supply chain is essential, the stink bug issue has also highlighted the need for more infrastructure in the general cargo area of the port. The good news on that front is that after several years of vigorous debate on the issue, Auckland Council recently endorsed our 30-year Master Plan, including several key projects for the general cargo wharves.

First up is the construction of a car handling building on Bledisloe Ro-Ro Terminal. We will seek resource

Ports of Auckland Focus

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Master Plan Timeline

OCTOBER 2018New cranes for Fergusson Container Terminal delivered

MID 2018Apply for consent for the car handling building

LATE 2018/ EARLY 2019

Apply for consent for new Bledisloe North Wharf

LATE 2019Fergusson Container Terminal automation goes live

2020 Channel and berth deepening

BY 2020Completion of Fergusson Container Terminal expansion

MID 2019 Waikato inland freight hub operational

WITHIN 5 YEARS Public park (on top of car handling building) New engineering workshop

EARLY 2019Car handling building construction starts New cranes on Fergusson commissioned

WITHIN 10 YEARS New head office

TIMING TBCHotel Rail grid automation

10-15 YEARSFergusson North Wharf extensiontiming dependent on shipping needs

WITHIN 10 YEARS Marsden Wharf removal and reconstruction of Bledisloe South Wharf to create third Ro-Ro berth

WITHIN 10 YEARSRemoval of part of Shed 51 and Bledisloe B1 Wharf to accommodate larger ships at B2 Wharf

JULY 2018Start removal of old Bledisloe container cranes

Tony Gibson, CEO Ports of Auckland

consent for this later in the year and aim to start construction in early 2019. This building will give us additional car handling capacity and enable several other projects: a new Ro-Ro berth on the northern end of Bledisloe; the removal of part of Shed 51 and B1 wharf to allow bigger ships to berth at B2; and the removal of Marsden Wharf to allow the creation of a third Ro-Ro berth at Bledisloe South.

We really appreciate the support our customers and cargo owners have given us as we’ve developed the 30-year Master Plan, and we look forward to delivering it for you.

Auckland Council recently endorsed our 30-year Master Plan, including several key projects for the general cargo wharves.

Automation at the Truck Grid

Better use of spaceVBS business rules go live

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Automated straddles, pictured in the back, will handle all receivals and deliveries at the truck grid

Interconnect

We are on a journey towards partial automation. Within the next 18-months A-Strads (automated straddles) and automated gates will be in place at Fergusson Container Terminal.

In preparation for this, we’ve made changes to some of our processes in advance. One of these changes is to the Vehicle Booking System (VBS), used by trucking companies to book time slots to pick-up or deliver containers at the port.

We first introduced the VBS in 2007, to improve the flow of trucks through the Ferguson Terminal. Over the past year we’ve been in consultation with the trucking industry and subsequently we introduced several changes to the VBS in May.

We have removed the old system of using templates, which made time slots available for trucks to call at the port, but not necessarily at the times they wanted or needed. With this manual use of templates in the system, we found that at times some companies were keeping bookings but not using them, which meant we had little visibility over which slots were going to be used or not, making it difficult to effectively manage the demand as we would like.

The removal of templates means there is greater transparency of slot availability, which will help us to better manage ‘no shows’ or ‘wasted slots’.

Changing business process is never easy and we acknowledge that there have been some teething problems while the new VBS rules are bedded in. We want to thank all those affected for the understanding and patience as we improve a number of these processes, ahead of the gates and processes becoming automated.

We are committed to driving efficiency and will continue to fine tune the processes where we can.

The changes have highlighted that there is an increasing need for upstream and downstream supply chain partners to communicate their demand more proactively, so logistics providers can more optimally manage their operations.

In time, we believe digital platforms and the likes of blockchain will help with these processes. We will keep working closely with all involved.

Zealand. This resulted in several PCC’s, carrying 8,300 vehicles being turned away from New Zealand, leaving customers and the industry waiting weeks to be able to pick up their vehicles and machinery.

Managing bio-security risks is of paramount importance to us. We all know that the introduction of a new animal, plant or insect species could have devastating effects on our horticulture and agriculture industry. The BMSB has had devastating effects in Europe and North America 6

since its infestation, wiping out

fruit trees and crops. With a high

reproductive rate, they are easily able

to invade other regions and cause

further damage.

Farmers across North America

increased their use of pesticides in

response and this lead to an increase

in production costs and reduced

profitability. In some cases, such as

organic farms, there was nothing that

could be done to stop the damage

caused by the stink bug.

Multi-Cargo Overview

We faced a significant challenge earlier this year, as we worked with partners to stop the introduction of Brown Marmorated Stink Bug (BMSB) to our shores. The arrival of stink bugs caused delays in car volumes across the port. This affected our berth and yard capacity and many key stakeholders, especially dealerships.

An infestation of the stink bug had the potential to become a large uncontrollable problem for New

New Zealand’s car industry faced significant challenges with the discovery of the Brown Marmorated Stink Bug (BMSB) on board inbound vessels, causing a cascading effect to all aspects of the New Zealand car trade

Multi-Cargo and stink bugs from Japan

Interconnect

We worked closely with the Ministry for Primary Industries (MPI) and fumigators during this time, adhering to strict bio security conditions. We kept in close contact with our customers to ensure the optimal approach was taken to clear vessels and cargo as promptly as possible.

We utilised all berths for the fogging treatment, including our newest berth Fergusson North, which was still a construction site when the idea was floated. It’s a real testament to the interdepartmental coordination and team effort that allowed us to successfully pull this off. It did not go unnoticed that the first vessel that berthed at our new container terminal berth was actually a Pure Car Carrier (PCC)!

Due to the co-operative attitude from Ports of Auckland, MPI, customers’ and fumigators’ delays were minimised as much as possible. Allocating Bledisloe Wharf for the denied vessels allowed for other low risk vessels to work around them.

Ports of Auckland Multi-Cargo Manager Spencer Brown said “The team worked diligently and closely with customers to ensure that there was enough wharf capacity for PCC’s and cargo to use during the stink bug issue. Following the stink bug incident, we continue to

be a very reactive operation, and look forward to returning to normal operations.

“We dispatched 122,959 cars and 1,620,068 tonnes in break bulk between November 2017 and April 2018. We would like to thank our customers for working with us and embracing the ever-changing health and safety requirements.

“There is a lot to learn from the stink bug issue. The industry working group, formed at the start of the situation, remains dedicated to the collaborative engagement that helped us all through this demanding time and ensures that we are all better prepared if a similar incident happens in the future, that we can handle it more efficiently.”

A Pure Car Carrier (PCC) is the first vessel to berth on Ports of Auckland’s new container terminal berth

The World Ports Sustainability Program was launched in March 2017. The program is based on the United Nations Sustainable Development Goals and is designed to enhance and coordinate future sustainability efforts of ports worldwide and foster international cooperation with partners in the supply chain. We have had two of our sustainability projects recognised by the World Ports Sustainable Programme including; zero emission by 2040 and the DC Microgrid research project. 8

To reach our goal of zero emissions

by 2040, we have implemented

an emissions reduction plan. The

strategy for reducing emissions is

to first improve energy efficiency

and then implement further

renewable energy and zero emission

technologies. Examples are

delivering zero-emission technologies

for container handling equipment and

harbour fleet vessels, installing solar

panels on office buildings to provide

alternative sources of energy.

Sustainability

Ports of Auckland have an ambitious goal to become zero emissions by 2040. Recently we became the first New Zealand port to be audited and verified by CEMARS® (Certified Emissions Measurement and Reduction Scheme). This accreditation recognises our actions and shows that we understand the carbon liabilities of our business. We have put in place management plans to reduce emissions in our organisation and more widely throughout the supply chain.

Ports of Auckland has set a target of becoming New Zealand’s most sustainable port, with zero emissions and ‘net positive’ energy by 2040.

Sustainability Focus

Interconnect

Efficiency improvements at Ports of Auckland are being implemented through behavioural changes, upgrades of assets to more energy efficient options, and through research projects. Behavioural changes will be achieved with training and by leveraging the port’s improved data analytics capability. The data analytics team is turning data from the project into useful information that can be used to raise awareness, and readily measure and manage operational efficiencies at the port.

We are committed to developing partnerships to achieve zero emissions, including EECA, the Energy Efficiency and Conservation Authority in New Zealand. Through this partnership we have delivered a port-first of LED floodlighting, which is expected to reduce electricity consumption by 7%.

We are working closely with the University of Waikato (UoW) and together are working on a pilot programme to establish a DC (direct current) micro grid for buildings and the port’s freight hubs.

Traditionally houses and offices have been wired for AC (alternating current), where solar panels produce DC (direct current) energy, which needs to be converted to AC before it can be used.

The collaboration with the UoW will help us use more sustainable energy systems and enable us to reach our goal of zero emissions by 2040.

We are developing this into a pilot programme which we hope will be used more widely at the port and be introduced to other New Zealand businesses and even homes. This could save up to 10% of energy, which is currently lost during the DC to AC conversion process.

We also have a target of sending zero waste to landfill by 2040. To do this we have implemented a new waste management plan with high staff engagement, a number of which have volunteered to run projects to monitor waste and decrease waste sent to landfill. The programme has already diverted more than 40 tonnes of recycled office and general waste from the landfill since its implementation in March this year.

Ports of Auckland and the University of Waikato are working together on a pilot program to establish a DC Micro Grid for buildings at the port and its freight hubs

PortConnect Review

PortConnect is a joint venture between Ports of Auckland (POAL) and Port of Tauranga (POT). PortConnect is New Zealand’s first joint online cargo management system and provides direct interaction with container movements from both POAL and POT, including its inland ports. PortConnect employs five full time equivalent employees and has offices at both POAL and POT.

This is a unique arrangement between two ports in New Zealand to work together to create solutions and efficiencies for shipping lines, trucking companies, freight forwarders and supply chain networks.

“Being owned by the two largest sea port terminals in New Zealand gives us the ability to look at investments that would be out of scope as individual businesses and has allowed us to broaden our ability to achieve efficiencies within the supply chain” says Dan Cowie, General Manager of PortConnect.

PortConnect collates several different data streams including container number, weight, isotype, destination and vessel. Exporters, small or large, can check on freight location, clearance status and vessel

movements. Monthly meetings take place with POAL and POT to create solutions for logistical and operational problems.

“PortConnect has been a toddler since it was created, running around learning the basics such as walking and talking, what to do and not do. The company is currently entering its teenage years, expanding its horizons and pushing the boundaries, we are gaining an understanding of what we are good at and we are excited this will bring. The support that we have been given by both POAL and POT indicates that future growth for PortConnect will only be limited by our vision for future functionally.”

Dan Cowie, General Manager PortConnect

Working together with PortConnect

…future growth for PortConnect will only be limited by our vision for future functionally

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Ports of Auckland is constantly working on initiatives to increase engagement and wellbeing within the workplace.

We have a large and diverse workforce, with three staff members recently winning awards at the New Zealand Association for Training and Development (NZATD). Michelle Smith, Manager Systems Training, won the Emerging Learning and Development Practitioner Award for establishing our Learning Management System (LMS). Michelle only entered the learning and development field in the last five years and her LMS entry took out some very stiff competition at the awards. No other New Zealand port had staff featured.

Diane Edwards, General Manager People, Systems and Technology, won the Learning Practitioner of the Year, recognising her work developing woman leaders at Ports of Auckland. She also took out the Overall Learning and Development Person of the year award.

Eddie Haretuku, a former long-standing staff member, won the On the Job Trainer/Coach of the Year for his stevedore training programme.

Ports of Auckland is proud of its people and will continue to invest in them and has more programmes in the pipeline to ensure staff are supported and informed, especially during times of disruption.

Left to right: Michelle Smith, Diane Edwards and Eddie Haretuku with their New Zealand Association for Training and Development awards

Award winning staff

Brent is doing an A-Class jobBrent Harsant has what he describes as ‘the best office in the world’. He has been in the Marine Team at Ports of Auckland for the past 15-years and doesn’t plan on changing this anytime soon. With a background in boat building and endless opportunities in the sector, it was a natural fit for Brent to take his passion to new levels. He started by captaining passenger ferries, he then got his skippers’ ticket and then oversaw the design and building of new pilot boat. The challenges and constant development of new skills are what keeps Brent motivated.

Outside of work Brent is mad keen on A-Class Catamarans and has been the president of the New Zealand A-Class Association since 2015. Later this year Brent will be leading 10 Kiwis in the 2018 Hervey Bay World Championships, including America’s Cup winners Peter Burling, Blair Tuke and Mike Drummond. With these boats reaching speeds of up to 25 knots, they are sure to entertain!

Supply Chain

To accommodate the current and future growth, The South Auckland Freight Hub at Wiri has had several developments. Ambient storage space will be increased further with plans to build two more facilities on site in 2019. With Wiri expected to reach a capacity of 200,000 TEU by 2023, the site will undergo further development to prepare it for increased cargo movements. The site currently handles 13 trains per day, with this expected to increase to 21 trains per day by August. The site currently has an annual throughput of 100,000 laden TEU.

Providing better international freight hub links for the regions, lowers

costs to importers and exporters, as the port works to balance flows and utilise the latent capacity in empty containers. It can also help relieve pressure on the capacity constraints experienced at the seaport.

The Waikato Freight Hub is currently being developed across 33 hectares and the first warehouse facility is set to be operational by Q1, 2019. Earthworks at the site are complete, connecting road and overbridge construction is underway, as is the first warehouse. The Waikato Freight Hub will be able to handle 100,000 TEU during the first phase of development and negotiations with the first customers are advanced.

We are investing significantly in a national supply chain network to better support customers and extend the port’s reach throughout New Zealand. We serve New Zealand’s national freight needs working collaboratively with other regional ports and our inland hubs, to deliver goods efficiently and sustainably.

In 2014, we unveiled a plan to be an active participant in the New Zealand supply chain and we’ve been working to this goal ever since. This year major progress has been made to the North Island Freight Hub network.

Ports of Auckland and the Supply Chain

As Auckland’s population continues to grow Ports of Auckland is investing beyond the seaport in inland freight hubs that connect Auckland to the national supply chain network

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demand high collaboration to ensure that containers and goods are being moved efficiently around the city and country. Nexus Logistics has recently invested in a new data driven software and Conlinxx in a new Transport Management System (TMS) in order to take full advantage of potential opportunities that technology can offer its customers.

As technology increases in the sector, benefits can be passed down to customers, lowering emissions and the cost of freight movements. Sustainability is an important part of any business and Nexus Logistics works to align with its customers sustainable strategies to ensure both parties will minimise

emissions throughout the total supply chain.

“We plan to take full advantage of the technological advances in the industry, we may not be able to deliver shipping containers via drones yet, but it opens up a number of opportunities for our business model to grow over the next few years,” said Nexus Logistics Chief Executive Officer Mike Lightfoot.

Last July Ports of Auckland acquired the remaining 50% of logistics company Nexus Logistics, and its subsidiary Conlinxx, from Netlogix. Nexus then sold Conlinxx to Ports of Auckland. Conlinxx has continued with its operations as a Metro transport provider and inland hub operator, allowing Nexus to focus on Intermodal freight solutions for its clients throughout Auckland and New Zealand. This has been an exciting change for Nexus as we develop the 4PL model.

As Auckland continues to grow we are seeing significant increases in freight movements, to keep up with consumer demands. High volumes

Nexus and Conlinxx Update

Nexus Logistics Chief Executive Officer, Mike Lightfoot

The Year So Far

Ports of Auckland Round the Bays and Industry Golf Day

The SeePort event earlier this year was the most successful SeePort event to date. This was the fifth year of the event. More than 72,000 Aucklanders visited the port over Auckland Anniversary Weekend. The Sunset Symphony & Fireworks

SeePort Celebrating 5th Year and Record Attendance

Ports of Auckland Round the Bays fun-run 2018 was another triumph this year, with over 30,000 registering to run the 8.4km route around the bays from Quay Street in the CBD, past the port and onto St Heliers Bay. Each year Ports of Auckland Round the Bays donates money to a selected charity – this year $20,000 went to the Spirit of Adventure Trust,

event on the Sunday night, with the Auckland Symphony Orchestra and the Lady Killers attracted more than 14,000 spectators. SeaPort allows the public to explore the port on land and on water, and provides the chance to see operations up close.

Right Top: Ports of Auckland staff member and family at the completion of Ports of Auckland Round the Bays

Right Bottom: Ports of Auckland CEO Tony Gibson presents the Ports of Auckland Golf Day cheque to Wayne Howett, CEO Ronald McDonald House Charities NZ.

Left: Visitors at Ports of Auckland’s open day, SeePort, have a tour onboard tug boat Hauraki

$15,000 went to Lifeline and $15,000 went to Riding for the Disabled South Auckland.

Earlier in the year a further $40,000 was raised for Ronald McDonald House at the annual Ports of Auckland Golf day, with a field of 29 industry teams.

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Interconnect

Ports of Auckland and Ngāti Whātua Ōrākei unveiled a special kōhatu (stone of remembrance) in May. It pays tribute to Āpihai Te Kawau. Te Kawau sold 3,000 acres (1,200 hectares) of land on the Waitematā Harbour for £50 and a quantity of goods, for the new capital of Auckland, but later resisted further sales.

Te Toka o Āpihai Te Kawau is a place where all people can come to learn the history of Tāmaki Makaurau on the edge of the Waitematā Harbour. The memorial has been created along the port’s historic red fence on Quay Street, near the former tip of Rerenga Ora Iti (Britomart Point). It is intended to be an attraction for locals and tourists alike.

Ngāti Whātua Ōrākei spokesperson Taiaha Hawke says, “This is in honour

Āpihai’s Rock Unveiling of our ancestor Te Kawau Taawa, also known as Āpihai, for his gifting of land to Governor Hobson for this town. There was previously no memorial of him in the city, so this is a huge deal for us”.

The memorial’s design is centred on Āpihai Te Kawau’s rock, set on a basalt stone bench, surrounded by a series of glass panels detailing the early history of Auckland.

“The port is honoured to have been able to work alongside Ngāti Whātua Ōrākei, hand-in-hand, to create this special monument to celebrate the founding of our city and commemorate the contributions of Āpihai Te Kawau to Tāmaki Makaurau” said Ports of Auckland Chief Executive Tony Gibson.

Ports of Auckland staff gather around Te Toka o Āpihai Te Kawau at the sunrise unveiling

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Interconnect is the magazine of Ports of Auckland, Sunderland Street, PO Box 1281, Auckland, New Zealand. Phone +64 9 348 5000